The term “ stable growth” ran as a topic of high priority according to the governmental report from the Two Sessions held this year. Echoing the theme of growth, the beginning of 2022 experienced a surge of good news. For instance, the National Bureau of Statistics ( NBS) reported that countries’ economic recovery rate were better than expected from January to February of this year. However, a turning point was reached in March. According to the most recent data released by the NBS, the official PMI for China's manufacturing sector was 49.5. Compared with a PMI of 50.2 in February, this was the first contraction after four consecutive months of expansion. Since late February, several cities have witnessed varying degrees of hard blows by the Omicron variant. Among these cities, a few (such as Shenzhen) have controlled extensive viral transmission and lockdowns have been lifted. However, as of April 2022, the situation in Shanghai continues to deteriorate. This has not only caused disruptions within Shanghai’s economy, but nationwide. Control measures to fight viral transmission have resulted in a severe impact on business operations, therefore deteriorating business expectations.

Influences of the Pandemic on China’s Economy